Crude oil prices are in a steady position. A bear candle formed last week, prefacing a possible reversal signal. However, it did not take place, the closest resistance was the range of 123.72-116.61, which was established 2 months ago.
WTI is gradually coming to a key upward trend line, maintaining a broad growth trend. The trend line also depends on Fibonacci expanding 38.2 per cent to 103.83.
If the support area is passed 92.95-95.11, there is likely to be a reversal from the uptrend from the end of last year.
A bearish shift is possible, reaching an inflection point of 85.38. Otherwise, passing the obstacle will shift the focus to the range of 124.76-129.41 and above.
Trader sentiment is mixed, as evidenced by 43% having net long positions on WTI.
Because IGCS, customer sentiment analysis works as the opposite metric, that most traders have bearish sentiment on oil may suggest good results for prices going forward.
Crude oil prices are relatively robust.
July Brent crude futures
fell $1.34, or 1.2%, to $112.08 a barrel by 06:06 GMT. Also, West Texas Intermediate (WTI) crude futures fell $1.28, or 1.2%, to $109.01 a barrel.
Light Crude Oil Futures
By TradingView
Many participants in the annual economic summit in Davos noted the risks of a global recession with concern.
Despite the tough lockdown in China, new cases of Covid-19 continued to be detected.
COVID-19 blockages in China certainly play a significant role, which affects the prospects for fuel and energy demand, as Beijing reports an increase in positive cases, which makes investors worry about the spread of blockages to a business center other than Shanghai,” said Tina Teng, analyst at CMC Markets.
Gasoline demand was expected to continue as there is a supply shortfall, so losses were limited. In the United States, the peak of the driving season will be by the end of the week, in connection with Memorial Day.
The embargo on the import of Russian oil is awaiting agreement by the European Union at the moment.
The head of Saudi Aramco (TADAWUL: 2222) said: “The world is facing an oil supply crisis and most companies are afraid to invest in the sector as they face pressure on clean energy,” however noting that he cannot expand production facilities faster than promised.
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